Zepto is an Instant Grocery Delivery quick commerce startup that has raised $665 million in a funding round at a valuation of 3.6 billion USD. This round was co-led by the existing investors Glade Brook, Nexus, and StepStone. Other investors participated, including Goodwater, Lachy Groom, Avenir Growth, Avra, and Lightspeed. The unicorn plans to scale up and increase its retail stores to 700 from 350 by the end of March 2025.
The company reported that its GMV crossed the $1 billion mark, with 75 percent of its stores receiving complete EBITDA positivity. The company made a strategic move to achieve profitability by reducing the time it takes to open its stores from 23 months to six months. The CEO and co-founder of Zepto mentioned that this initiative helped them profit faster, enabling Zepto to grow rapidly while achieving positive EBITDA at a company level. The firm is focusing on reinvesting the capital generated from stores into the business. They are also planning to go public soon and are hiring a team for engineering, finance, operation, category management, and growth.
Zepto grew rapidly in the grocery delivery market and was the first unicorn in 2023 after securing 200 million USD in its series E funding round. The company also plans to move its base to India with a public listing in 2026. This fresh capital will help Zepto scale up, expand its network, and advance its technologies to compete in the quick commerce sector, which is growing continuously.
Zepto reported a 14.3-fold increase in revenue to Rs 2,024.3 crore in FY23. However, the net loss also increased 3.4 times to Rs 1,272.4 crore simultaneously. This M startup competes with other quick commerce startups, including Swiggy, Instamart, Blinkit, and Zomato-backed Blinkit.
Conclusion
Zepto is a grocery Delivery Startup that secured 665 million USD in a funding round at a valuation of 3.6 billion USD. This round was co-led by the existing investors Glade Brook, Nexus, and StepStone. Other investors participated, including Goodwater, Lachy Groom, Avenir Growth, Avra, and Lightspeed. This marks the second biggest fundraising round by this unicorn. The firm’s existing investors include StepStone Group, Nexus Venture Partners, and Glade Brook Capital.
The unicorn plans to scale up and increase its retail stores to 700 from 350 by the end of March 2025. The firm is focusing on reinvesting the capital generated from stores into the business. They are also planning to go public soon and are hiring a team for engineering, finance, operation, category management, and growth. This fresh fund will help Zepto scale up, expand its network, and advance its technologies to compete in the quick commerce sector, which is growing continuously.
The company reported that its GMV crossed the $1 billion mark, with 75 percent of its stores receiving complete EBITDA positivity. This quick commerce company competes with other startups, including Swiggy, Zomato-backed Blinkit, Facebook’s quick commerce subsidiary, Swiggy’s Instamarket, and Tata’s BigBasket.
